Barb Pfeiffer Senior Consultant & Chief Channel Expert The Partner Marketing Group

Beyond the Referral:The Growing Role of Customer Advocates in Technology Marketing

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Beyond the Referral: The Growing Role of Customer Advocates in Technology MarketingOne of the first questions I ask every potential client is “where do

your leads come from?” A healthy majority answer “referrals.”

My follow up question is “what do you do to get those referrals?”

Unfortunately, I rarely receive an answer beyond “we’ve been in

business for years and people know us.” When we dig deeper, we

typically find that sources include (in order):

• software publishers, ISVs and non-competitive partners,

• non-technology businesses (accountants),

• and, finally customers (if they are mentioned at all).

When customers are mentioned as a source, I ask how the

company is engaging with them. Answers are light on details.

Evidently, the answers from my partner and ISV clients reflect

the norm in the B2B space. The Edelman Trust Barometer has

done extensive research on B2B decision making. In their most

recent study, they found 84% of B2B decision makers begin the buying process with a referral.

84% of B2B decision makers begin the buying process with a referral.

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More than just a leadWhere it gets really interesting, though, is that a customer

referral can go far beyond a lead. A recent study by the American

Marketing Association found that peer-recommended leads are 2.5x more responsive than leads generated by any other marketing channel.

Your customers also add credibility to your marketing claims. In

the B2B technology marketing space, your customers can be your

strongest differentiator. While a referral is wonderful, case studies,

testimonials, and references add to the middle and bottom of your

sales funnel.

So, if the data supports the importance of cultivating customers

as referral sources, what’s holding technology providers back? For

too many marketers, customer engagement is an afterthought,

limited to nurture touches like a periodic newsletter and some

cross-selling campaigns. There’s so much more that you can do.

In this eBook, we’ll look at what it takes to turn your customers

into outspoken advocates with a powerful customer advocate

marketing strategy. Read on for some ideas you can put to work.

Customer Advocate MarketingWhat is customer advocate marketing and how is it different from a referral program?

Search the term “customer advocate marketing” and you’ll find a ton of information (and tools) to engage your customers online. The focus tends to be around social media and what, in the past, we would have called brand advocates—those people who will proactively promote the value of a brand.

In the B2B space, a more applicable definition is a marketing strategy that encourages your current customers to share their experience solving a challenge with other businesses facing the same issues.

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Section 1

The foundation What turns your current customers into powerful advocates?

A little hint—it’s NOT a gift card. In fact, in the B2B technology

space, incentives are generally ineffective.

At some level—EVERY happy customer is an advocate. So your

first priority is making sure you have what it takes to keep your

customer happy. What does that entail?

Start with a positive experienceEnsure a good experience with every person in your organization

at every step of the process from sales through the CEO. You need

a culture of customer service that goes beyond lip service.

• Include customer satisfaction goals for your team and

rewards based on achieving those goals.

• Celebrate customer satisfaction wins.

• Know your customers’ expectations and build processes that

meet and exceed them.

Continue with education Provide regular education to your customers, not just on products

but on their industry as well. Provide eBooks and whitepapers that

educate (not just sell more). Don’t have time to write them? Buy

them. Make a gift of whitepapers and articles from organizations

like Harvard Business Review. Associations in your customers’

industry may also have good reports you can purchase and share.

The bottom line?

Customer satisfaction!

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Take education a step further with rich customer events. Invest in

bringing in an expert that your customers want to hear such as an

author or industry guru. (Remind the boss of the ROI of increased

referrals.) Do it annually, do it right...and your customers will be

calling you looking for their invitation.

Make communications PERSONAL Remember—these are customers who already have a relationship

with your firm. You should know everything about them. If you

don’t, start now. Follow them through social networks, connect

on LinkedIn and set up alerts for news of their company via tools

such as Google Alerts.

Too many customers to keep up with? Good for you! Now would

be the time to invest in a customer intelligence and research tool

like InsideView to do the heavy lifting for you.

Listen with your ears and mind open Use customer satisfaction surveys CONSISTENTLY to get enough

feedback to show trends over time. Consider bi-annual surveys

(annual if you don’t have the resources) but keep them brief, with

no more than 5 or 6 questions for better participation. This is

when you CAN offer a gift card as a thank you for their time.

In addition to surveys, pick up the phone and ask your customers

how things are going. If you’re not actively engaged with a

customer (on a support issue or some additional projects) you

should be calling them regularly to make sure all is going well.

Always be listening!

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Section 2

Turning on the power Now that you have a team of happy customers, how can you activate them? There’s really only five things to keep in mind:

1. Simple as it seems, ASK them. Studies show that while

most firms value referrals above all marketing tactics,

only a small percentage actually ask their customers on a

regular basis.

2. Have the right people do the asking. Referrals are given

as a vote of confidence in your firm, so the person with

the closest relationship to the advocate (i.e. customer,

influencer) should be the one to ask.

3. Ask when you are “winning.” The best time to ask for a

favor is when you’ve just given one. Right after you solve

a major challenge (that was not of your making) is a great

time to ask. Also consider asking after a phone call or

survey that uncovers a particularly happy customer.

4. Make it easy. When asking them to talk about you on

LinkedIn or Facebook, provide a sample post or ask them to

specifically address something you have already posted.

5. Thank them. Over and over. By the way, you should know

your customer advocates by now (particularly those who

are really active) so you should also know the best way

to thank them. If their company prohibits gifts, consider

charitable gift card items from Tis Best or KIVA that are

usually acceptable under any policies. Not every action

needs a gift but they all need a thank you.

Recognize that the referrer has their reputation to think about if you don’t delight their colleague or business associate.

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Section 3

The outcomes Strong customer advocates will impact your sales and marketing

in a myriad of ways.

Help them tell their story Story telling is a critical element of B2B marketing. Successful

customer stories are the most effective credibility tool you have.

Be creative in the form of stories, there’s no one right way. Use

case studies and testimonials (including videos), blogs and press

releases, or even simple quotes posted on your site.

When you are ready to write the story, remember it’s a shared

journey. Make it as valuable for your customer as it is for you

by featuring their products and services as much as you do the

solution. Make them the hero of the story and it will pay for itself

over and over.

The power of reviews Possibly one of the easiest, yet very powerful, actions an advocate

can take is publishing reviews about your products and services.

Some leading software publishers (think Microsoft and Pinpoint,

Salesforce and AppExchange) are making reviews a key piece of

their find a partner / solution portals and we expect others will

follow. LinkedIn, of course, has their “recommend” function. Other

software review sites may ask for this information as well.

Lead with LinkedInWhen it comes to referrals and activating customer advocates for B2B technology services, LinkedIn beats the other social networks by far.

Most of us only use a small piece of the functionality and opportunities available. When you build your customer advocate plan, spend some time researching LinkedIn and make it a key part of your plan. You can started with this article, 10 Ways to Generate More Leads and Referrals on LinkedIn, or take it a step further with books like the LinkedIn Code.

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Put your customers in the spotlightAlmost all software publishers have awards for their channel

and most are going to be based on customer engagement. Your

customer’s role in this can be as simple as permission to apply

or as resource intensive as attending an event with you and

speaking about the engagement. Review the opportunities and

create a plan to engage your customer as warranted.

Activate your referrers Of course the bottom line (and most valuable of all the customer

advocate actions) is the direct referral. How do you get them?

Like everything else—make it easy.

• Most software publishers have customer events. Arm your

best advocates with business cards so they can easily share

your information if appropriate.

• Set aside time each week to look at the contacts of your

customers on LinkedIn. If any fall in your “prospect” criteria,

ask for a recommendation. (Better to ask off-line, however,

with an email.) This is a powerful tactic but can be overdone,

so save this for your best opportunities.

• Although I don’t think the typical “customer” newsletter does

much, a bi-annual email reminding your best advocates of

what you do, who you do it for, and asking for a referral will

keep you top of mind. You could combine it with an offer

(such as assessment, pricing offers, etc.) to give it a sense of

specificity and urgency.

Spread the word with social media Everyone looks on social media to see what people are saying about you. In the B2B space, LinkedIn is the most important of these networks. Be connected and engaged with all your customers so they can easily share your messages. Post items of value like eBooks and whitepapers that make them look good for sharing.

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Section 4

Are you ready? Like any other marketing program, it’s the execution that drives

success. A commitment to customer advocate marketing will pay

huge dividends but poor execution will waste time and irritate

your customers. Put the following pieces in place to build a loyalty

program that will deliver results.

Assign a leader Building a culture that creates customer advocates requires

strong leadership from the very top. One person from top

management (think Owner, CEO, or President) should own the

customer advocacy initiative for your company. Marketing and

sales can do the heavy lifting but this leader should be engaged in

everything from approving the overall plan to personally meeting

with key advocates.

Have a planReferrals are no accident! A real program requires a plan. Your

plan should include targeting customers, creating a calendar,

and implementing processes for engaging them. Spend time

building the templates and other materials you’ll need to execute

a winning program.

Allocate budget It may not be huge but you will need some budget for

appreciation gifts, educational materials, an industry speaker, or

case study creation.

Referrals are no accident! You need a plan, a leader, and a budget.

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Define your goals As with all marketing programs you’ll need a goal so you can see

how you’re progressing. Keep your measurements simple as you

get started. For example:

• Overall income from referrals

• Increased engagement rate

• Increased referral rate

More than just referralsIt’s easy to get a little tunnel vision on this topic and start thinking

solely about the referrals your good advocates could bring to the

business. But a compelling customer advocate program is much

more than just referrals. (Granted, it’s the element with the most

impact on revenue to your firm.)

A true customer advocacy program is more than just leads— it’s a company culture that builds momentum over time.

Building a customer advocacy program is not easy. It starts with

delighted customers who are happy to sing your praises. It grows

as you implement processes that demonstrate your commitment

to a customer-centric culture. Give your customers the best—not

just when you need them but every day of the year.

Your renewed commitment and systematic approach to a

customer advocacy program may be the most financially rewarding

marketing and sales program you ever roll out. Like all marketing

programs, success comes with commitment and patience.

A compelling customer advocate program is much more than just referrals.

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© 2015 The Partner Marketing Group. All rights reserved.

Visit www.ThePartnerMarketingGroup.com or email us at

info@ThePartnerMarketingGroup.com or call 732-237-8795

Create a winning customer advocate programWe hope you found our insights on customer advocacy marketing

interesting. We’ve been helping other Technology Service

Providers and Software Vendors get effective referral programs

up and running. Let’s get started on yours.

Email us at info@ThePartnerMarketingGroup.com or call

732-237-8795.

About Barb PfeifferWhen it comes to innovative marketing for technology companies

and their channel, few people possess the level of expertise,

leadership and passion as Barb Pfeiffer. She has spent most of

her career developing and driving high-performing marketing

programs for Microsoft and a global network of software VARs

and ISVs. A marketing strategist, Barb’s work includes many

exclusive Microsoft programs such as GAP, Landlord, Butterfly

Publisher, Marketing Essentials and Marketing Office Hours.